XRP found a silver lining after a recent sell-off pushed the price to test the important $1 support: a rare monthly momentum signal is reappearing that, historically, has come before big rallies.
Market analyst Sam Daodu points out that XRP’s monthly relative strength index (RSI) has dropped to about 41.6 — a level he calls the lowest ever for the token and a “deep-oversold” reading that has only shown up four times in the past 13 years. According to Daodu, the last three occasions this monthly RSI setup appeared (2017, 2020 and 2022) were followed by explosive moves, with price gains in those cycles ranging from roughly 1,000% to as much as 60,000%.
That historical pattern is getting traders’ attention, but Daodu and the report emphasize an important reality check: the enormous percentage gains previously recorded started from extremely low price bases. For example, XRP was under a penny in 2017 before its subsequent multi-thousand-percent surge — a path that’s not realistically repeatable from today’s much-higher price levels.
So what would a more plausible outcome look like if the monthly RSI pattern holds this time? Daodu’s estimate is conservative: reclaiming the $3.65 cycle high over the next year or two — roughly a 3x move from current levels — is believable if crypto market sentiment turns positive. Hitting substantially higher marks, such as $5 or beyond, would likely require more than just a technical bounce; the report ties that upside to specific fundamentals, notably passage of the CLARITY Act and a genuine expansion in ETF demand.
Timing also matters. Even if the bottom is already in, the report cautions that the following rally could unfold slowly — potentially taking until 2027 to fully play out — and a flat price through the summer would not necessarily invalidate the monthly RSI setup, which is designed to resolve over a longer horizon.
In short: a rare monthly RSI signal has reignited hope for XRP, but historical context and market structure make runaway percentage returns unlikely from today’s base. A credible target would be a retest of $3.65 within one to two years, while higher milestones depend on meaningful fundamental catalysts.
Image: created with OpenArt; chart: TradingView.com.
Read more AI-generated news on: undefined/news
